Canstar Announces 211 g/t Gold Grab Sample and Significantly Expands Blow Out Prospect at Golden Baie

(TheNewswire)

Highlights

• - Assays from channel sampling at the Kendell Prospect demonstrated continuity of the shear zone hosting gold-bearing quartz veins over a strike length of about 70 metres, including a new style of coarse, free gold mineralization with grab samples assaying up to 211 g/t gold;

  - Soil sampling at the Blow Out Prospect indicated anomalous gold values over a distance of approximately 1,270 metres with widths ranging from 75 to 300 metres;

  - Two float samples grading 19.2 g/t gold and 36.1 g/t gold were discovered 100 metres east of the Blow Out soil grid, potentially increasing the size of the mineralized area.

Toronto, Ontario - TheNewswire - February 22, 2021 - Canstar Resources Inc. (TSXV:ROX ) ( OTC:CSRNF) (" Canstar" or the "Company ") is pleased to announce the final assay results from the surface exploration program conducted in the fall of 2020 at its Golden Baie Project in southern Newfoundland. The 2020 exploration program was successful in further defining the extensive gold mineralized system found over 30 kilometres of strike length along the southeastern margin of the Dunnage tectonic zone (Figure 1), just west of the Day Cove Thrust. In addition to expanding two of the known mineralized areas, results also confirmed a new style of high-grade, free gold mineralization not previously recognized on the property.  Canstar is planning an extensive 2021 exploration program which will include a significant drilling program to follow up on these results and expand into other targets areas. Details on the upcoming program will be provided in the next month.

Kendell Prospect – Trenching Confirms New Style of High Grade Gold Mineralization

Canstar concentrated its 2020 exploration efforts on the area around the Kendell Prospect due to significant results from 2019/20 prospecting that yielded samples with visible gold that assayed up to 4,485 g/t gold.  This was the first identification of this style of gold mineralization on the Golden Baie Project. Canstar's 2020 prospecting identified multiple outcrop and float samples with visible gold in quartz stockwork and quartz breccia associated with intense silicification. ( Note: the reader is cautioned that rock grab samples are selective by nature and values reported may not represent the true grade or style of mineralization across the property.)

Two adjacent trenches excavated by Canstar, TGB-20-01 and TGB-20-02, contained shear-related mineralized quartz veining in shales with associated disseminated gold mineralization in wall rock.  Visible gold was found over 36 metres out of a total strike length of about 70 metres.  Partial results for trench TGB-20-01 were disclosed on November 30, 2020 and results for channels across trenches TGB-20-01 and TGB-20-02 are shown in Table 1.

Blow Out Prospect – Expanded Footprint of Gold in Soils and Rocks

Canstar completed a grid soil sampling program at the Blow Out Prospect in the fall of 2020.  The soil sampling program results indicate two NE-SW trending gold anomalies with a combined length of approximately 1,270 metres, with widths ranging from 75 to 300 metres.  Two float samples were also discovered 100 metres east of the Blow Out soil grid assayed 9.2 g/t gold and 36.1 g/t gold.

Table 1 - Channel Results from Trenches TGB-20-01 and TGB-20-02

True widths are not estimated at this time.

Units: 1 g/t = 1 ppm = 1,000 ppb

Rob Bruggeman, President & CEO of Canstar, commented: "The 2020 Golden Baie exploration program was focused on a small part of the large claim block, but yielded the best trench results on the property to date and significantly expanded the size of the Blow Out Prospect area. The team is currently compiling and analyzing all historical data to prioritize targets for the upcoming 2021 exploration program, which will cover a much larger portion of the Golden Baie Project."

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Figure 1 - Significant Newfoundland Gold Projects in the Dunnage Tectonostratigraphic Zone

Historical exploration work on the Golden Baie Project identified over 20 gold occurrences along approximately 30 kilometres of a major gold bearing structure (Figure 2). These targets have not had any meaningful exploration work for at least a decade.  2021 exploration efforts will prioritize the gold occurrences for follow-up exploration work, after digital compilation and analysis work that is currently underway is completed.

A review of historic work on the Golden Baie property identified a significant number of gold anomalies in both soil and rock samples. Canstar concentrated its 2020 exploration efforts on the area around the Kendell Prospect due to significant results from 2019 and 2020 prospecting work in the area.  Results from the prospecting identified multiple outcrop and float samples with visible gold in quartz stockwork and quartz breccia veins.  This was the first identification of coarse, free gold mineralization on the Golden Baie Project and was deemed a priority target since the 2019 grab samples returned assays up to 4,485 g/t gold.

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Figure 2 - Golden Baie Project Claims and Gold Occurrences

Blow Out Prospect Soil Sampling and Prospecting Results

The Blow Out Prospect is located approximately 2 kilometres northeast of the Kendell Prospect (Figure 2) and is emerging as a high priority exploration target. Extensive prospecting and a systematic soil sampling program were completed at the Blow Out Prospect during the 2020 field season. A 50-metre spaced soil grid conducted over an area measuring 1,450 m x 400 m generated at least two NE-SW trending anomalies (Figure 3).

Prospecting results from the Blow Out Prospect include:

• - Resampling of a historic exploration trench, confirming historical grades with new grab samples assaying between 10.48 and 32.06 g/t gold;

  - Two angular polymetallic boulders which assayed 5.8 g/t gold (including 146 g/t silver and 2.3% lead) and 4.8 g/t gold (including 1.3 g/t silver, trace copper and lead) prospected in the southwest part of the grid;

  - Discovery of a different style of quartz vein, outcropping within a stream bed in the southwest part of the grid.  The new styled gold vein assayed 2.16 g/t gold and boulders downstream from this sample assayed 30.29 and 10.59 g/t Au; and

  - 100m east of the soil grid a cluster of boulders were documented and sampled resulting in two samples assaying 19.23 and 36.14 g/t Au.

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Figure 3 - Soil Anomalies and Select Grab Sample Results at the Blow Out Prospect

Multiple Styles of Gold Mineralization at Golden Baie

Historical work on the Golden Baie Project identified two distinct styles of gold mineralization: (1)  disseminated sulphides, including arsenopyrite, pyrrhotite, pyrite and stibnite, associated with carbonate alteration and hosted within felsic to intermediate tuffs and pelite; and, (2) antimony and sulphide-bearing quartz ± carbonate-sericite-chlorite veins, fractures and foliation-parallel bands.

Most of the gold bearing quartz veins encountered in Canstar's 2020 program were sheared and recrystallized, roughly parallel to the host rock fabric (when this could be determined). A new, second style of quartz vein was documented (stream and trench sample, as discussed above). This quartz vein style appears thicker, cuts the dominant fabric, may be poly-deformed and is blue-grey in color. Significantly, it appears to be coarsely recrystallized with visible gold (Figure 4).  Two grab samples of this style of vein from TGB-20-01 and TGB-20-02, assayed 211 and 28 g/t gold, respectively.  In the southern part of the Blow Out soil grid a 40 cm vein cutting the local foliation assayed 2.16 g/t Au.

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Figure 4 - Visible Gold in Quartz in Sample R16268

The two polymetallic (base metal sulphide) boulders uncovered in the southwest part of the Blow Out Prospect soil grid are volcanic or volcaniclastic rocks host rocks with approximate values of 5 g/t gold.  Both the base-metal character and hosts rocks have not been identified in outcrop suggesting the potential for another mineralization style in this area. Canstar plans to conduct a ground-based mag survey over the area in the coming weeks to help understand the structural geology and generate targets for follow up.

QAQC:

All rock and soil samples were collected by company personnel and sent to Eastern Analytical of 403 Little Bay Road, Springdale, NL, a commercial laboratory that is ISO/IEC 17025 accredited and completely independent of Canstar Resources Inc. Eastern Analytical pulverized 1000 grams of each sample to 95%

Qualified Person

Bob Patey, B.Sc., P.Geo, Senior Geologist of Canstar, and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed and approved this release.

About Canstar Resources Inc.

Canstar is focused on the discovery and development of economic mineral deposits in Newfoundland and Labrador, Canada. Canstar has an option to acquire a 100% interest in the Golden Baie Project, a large claim package (over 62,175 hectares) with multiple outcropping gold occurrences on a major structural trend in south-central Newfoundland. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland. Canstar Resources is based in Toronto, Canada, and is listed on the TSX Venture Exchange under the symbol ROX and trades on the OTCPK under the symbol CSRNF.

For further information, please contact:

Rob Bruggeman P.Eng., CFA

President & CEO

Email: rob@canstarresources.com

Phone: 1-416-884-3556

www.canstarresources.com

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